The California Department of Real Estate (DRE) has reached a settlement with Lance McHarg, former president of Real Estate Trainers, Inc. (RETI), following an investigation into improper conduct related to the state’s real estate license examination.
According to the DRE, McHarg repeatedly took the real estate license exam without passing and used knowledge gained from these attempts to incorporate exam content into educational materials sold by RETI for students preparing for the state licensing test.
“The subversion of real estate license examination content is something DRE takes very seriously,” said Assistant Commissioner Jeff Oboyski, who oversees the Licensing Division. “Ensuring that those who attempt to compromise the integrity of our real estate license exams are held accountable for their actions underscores DRE’s commitment to consumer protection.”
Under the terms of the settlement, McHarg is barred for three years from applying for or participating in any capacity in California’s real estate licensing process. He is also prohibited from holding any position within a real estate business or a company offering pre-license or continuing education courses. RETI and its officers, directors, instructors, and affiliated persons face similar restrictions during this period.
Additionally, McHarg and RETI are required to pay $60,000 covering penalties, damages, and investigative costs associated with the case. The agreement mandates McHarg’s removal from all roles at RETI.
The DRE’s Education and Research section reviews and approves all continuing education and pre-license courses offered by private providers. Currently, there are 63 providers offering 525 approved continuing education courses and 163 providers offering 859 statutory/pre-license courses in California.
The Department regulates approximately 434,000 licensees statewide. Its mission is to protect public interests in real estate through licensure oversight, regulation, education standards, and enforcement measures.
